RODTEP Scheme Explained: Meaning, Benefits & How It Works
What is the RODTEP Scheme?
The RODTEP Scheme (Remission of Duties and Taxes on Exported Products) is an export incentive introduced by the Government of India to refund embedded taxes and duties that are not refunded under any other scheme. These taxes increase the cost of exports and make Indian products less competitive in global markets.
Under RODTEP, eligible exporters receive transferable electronic duty credit scrips (e-scrips), which can be used to pay customs duties or sold in the open market.
Objective of the RODTEP Scheme
The main objectives of the RODTEP scheme are:
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To make Indian exports cost-competitive in international markets
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To refund hidden and non-recoverable taxes
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To ensure compliance with WTO norms
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To replace earlier export incentive schemes like MEIS
RODTEP is designed as a transparent, IT-driven and WTO-compliant export benefit mechanism.
Taxes and Duties Refunded Under RODTEP
RODTEP refunds taxes and duties that are not refunded under GST or other schemes, such as:
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Electricity duty
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VAT on fuel used for transportation
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Mandi tax
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Stamp duty
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Coal cess
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Central excise duty on fuel
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Embedded GST on inputs where credit is not available
These costs are calculated and refunded through RODTEP credits to reduce exporters’ overall cost burden.
Who is Eligible for RODTEP?
The following exporters are eligible under the RODTEP scheme, subject to government notifications:
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Manufacturer exporters
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Merchant exporters
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DTA (Domestic Tariff Area) units
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Advance Authorization (AA) holders
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SEZ and EOU units (as notified from time to time)
Exports made under eligible shipping bills with RODTEP declaration can claim the benefit.
How to Claim RODTEP Benefits (Step-by-Step)
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Export goods with RODTEP option selected in the shipping bill
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Shipping bill data is processed on the ICEGATE portal
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Eligible RODTEP amount is calculated based on HS code
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Electronic RODTEP scrip (e-scrip) is generated
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Exporter can:
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Use the scrip to pay customs duty, or
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Sell the RODTEP scrip to other importers
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The entire process is paperless and digital.
RODTEP Rates and Calculation
RODTEP rates are notified by the government and are generally based on:
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HS code of exported product
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FOB value of exports
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Maximum value cap per unit
Rates may vary from product to product and are subject to revision through DGFT notifications.
Latest RODTEP Scheme Update
The Government of India has extended the RODTEP scheme, ensuring continued support for exporters. Exporters should regularly check DGFT notifications for updates on:
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Product coverage
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Rate changes
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Validity period
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Eligibility conditions
Staying updated helps exporters maximize benefits under the RODTEP scheme.
Latest Update – RoDTEP Scheme Extension 2026 (DGFT Notification)
DGFT Notification No. 35/2025 has extended the RoDTEP scheme until 31 March 2026. This extension ensures exporters from DTA units, AA holders, SEZ and EOU units continue to receive refunds on embedded taxes and duties. Exporters should check DGFT notifications regularly for updates on rates, product coverage, and eligibility.
Exporters should regularly check DGFT notifications for updates on:
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Rate changes
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Product coverage
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Eligibility criteria
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Validity period
Staying updated helps exporters maximize benefits under the RODTEP scheme.
RoDTEP vs RoSCTL – Key Differences
RoDTEP applies to a wide range of export products, whereas RoSCTL is applicable mainly to apparel and made-ups. Both schemes provide transferable duty credit scrips that can be used for customs duty payment or sold in the open market.